Research On Moral Hazard Of Small And Mulium Banks After The Establishment Of Deposit Insurance System

The important function of deposit insurance system,is through the experience and the world to reach a consensus,it reduces the potential financial burden under implicit deposit insurance system,is conducive to the fair competition of banking.At the same time,if the establishment of a deposit insurance system is not starting from the basic national conditions,the system design is unreasonable,such as a premium form of a single rate,the deposit insurance system will show negative effects,mainly manifested in the occurrence of moral hazard.In May 2015,China formally established the deposit insurance system,this system in the maintenance of financial security at the same time to bring the risk of moral hazard,small and medium-sized Banks face the deposit insurance regulations,they will how to adjust their business,they will tend to high-risk high-yield management way,raising the risk of moral hazard?It is very necessary to study this issue at the present time when financial reform is deepening.Admittedly,the establishment of explicit deposit insurance system,to break the state-owned Banks under implicit deposit insurance system and the situation of unfair competition,and small and medium-sized Banks but also the potential for small and medium-sized Banks to high-risk business model.This paper mainly studies the causes of moral hazard in the deposit insurance system and the performance of moral hazard in small and medium-sized Banks.Another focus of this paper is that the establishment of deposit insurance system has improved the recognition of customers of small and medium-sized Banks,that is,can improve their ability to absorb and store deposits.Research methods:this paper discusses the behavior of small and medium-sized Banks in the face of deposit insurance system from two aspects of theoretical analysis and empirical analysis.The moral hazard caused by the deposit insurance system should not be underestimated.Powerful supervision system,a sound legal system,perfect system of facilities,the effective corporate governance,appropriate education,and which are the deposit insurance system played a key link in the process of the most-positive utility.